Texwinca Holdings (0321) said its net profit for the last financial year fell because of higher fuel costs and a stronger US dollar. The casual apparel and accessories retailer yesterday revealed a 7.1 percent slide in net profit to HK$860 million for the fiscal year ended March 31.
Chairman Poon Bun-chak said a stronger US dollar had hurt its foreign exchange gains which plummeted from HK$200 million to HK$1 million.
Texwinca also saw decreases in profits in its textile, retail and distribution and garment manufacturing businesses. The firm recommended a final dividend of 22 HK cents. This took the total dividend to 40 HK cents - 7 percent down from 43 HK cents in 2007 but maintaining a dividend payout ratio of around 61.7 percent.
During the last fiscal year, the firm's gross revenue rose 3.4 percent to HK$9.99 billion. Poon said he expects a more favorable business environment next year. The firm plans to focus on China where it will open 150 outlets.
Texwinca shares fell 2.75 percent to HK$6.01 yesterday.
